Industrias Bachoco S.A.B. de C.V., one of Mexico's leading poultry and food processors, said it agreed to purchaseO.K. Industries, Inc., a Fort Smith, Ark., poultry company. Terms were not disclosed.
Officials at Bachoco, Celaya, Mexico, said the deal represents an important new step.
"This acquisition is one of the most transcendental steps for Bachoco,
since it is our first international acquisition and first entry into
the U.S. poultry market," said Rodolfo Ramos, Bachoco CEO.
Founded in 1933, O.K. Industries, Inc. began as a local, balanced feed company. Today's it's one of the nation's largest vertically-integrated poultry companies, officials said. With facilities across the River Valley area in Arkansas and Oklahoma, O.K., processes 2.5 million chickens per week, with total annual sales of approximately US$ 600 million. The company supplies U.S. grocery retailers, foodservice distributors and commodity customers as well as foreign markets.
Bachoco said it will retain the management team at O.K., which will operate as O.K. Industries Inc., following the acquisition. Bachoco said it also will keep O.K.'s nearly 4,000 workers and associated growers.
Industrias Bachoco businesses include chicken, table eggs, balanced feed and swine. Founded in 1952,the company operates 60 distribution centers and has a growing export business, officials said. Bachoco trades on both the Mexican Stock Exchange (BMV) and New York Stock Exchanges under the ticker BACHOCOB.MX and IBA respectively. For the year ended December 31, 2010, the Company reported net sales of more than US$ 2 billion.
Mexico's Bachoco to buy U.S. poultry biz
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